Principal Financial Group Inc. Increases Stock Position in Trex Company, Inc. $TREX

Key Points

• Principal Financial Group increased its Trex stake by 32.1% in Q4, buying 266,580 additional shares and bringing its total holdings to 1.1 million shares worth about $38.5 million.
• Trex’s latest quarter came in ahead of estimates, with EPS of $0.59 versus $0.51 expected and revenue of $343.4 million versus $340.0 million forecast.
• Management issued constructive guidance, projecting Q2 revenue of $388 million-$403 million and full-year 2026 revenue near $1.2 billion, while also planning to finish a $150 million buyback in Q2.

Principal Financial Group Inc. lifted its holdings in shares of Trex Company, Inc. (NYSE:TREX - Free Report) by 32.1% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,098,189 shares of the construction company's stock after buying an additional 266,580 shares during the quarter. Principal Financial Group Inc. owned about 1.02% of Trex worth $38,524,000 at the end of the most recent quarter.

A number of other institutional investors also recently modified their holdings of TREX. Alliancebernstein L.P. lifted its stake in Trex by 1.9% in the 3rd quarter. Alliancebernstein L.P. now owns 7,543,925 shares of the construction company's stock worth $389,795,000 after purchasing an additional 142,215 shares in the last quarter. American Century Companies Inc. lifted its stake in Trex by 2.5% in the 3rd quarter. American Century Companies Inc. now owns 2,191,472 shares of the construction company's stock worth $113,233,000 after purchasing an additional 53,554 shares in the last quarter. Wellington Management Group LLP lifted its stake in Trex by 86.8% in the 3rd quarter. Wellington Management Group LLP now owns 1,974,096 shares of the construction company's stock worth $102,002,000 after purchasing an additional 917,448 shares in the last quarter. Impax Asset Management Group plc lifted its stake in Trex by 93.0% in the 3rd quarter. Impax Asset Management Group plc now owns 1,934,581 shares of the construction company's stock worth $99,354,000 after purchasing an additional 932,247 shares in the last quarter. Finally, Madison Asset Management LLC lifted its stake in Trex by 1.2% in the 3rd quarter. Madison Asset Management LLC now owns 1,893,081 shares of the construction company's stock worth $97,815,000 after purchasing an additional 22,027 shares in the last quarter. 95.96% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. Zacks Research upgraded Trex from a "strong sell" rating to a "hold" rating in a report on Tuesday, February 3rd. Wall Street Zen upgraded Trex from a "sell" rating to a "hold" rating in a report on Saturday, May 2nd. Bank of America cut their price objective on Trex from $43.00 to $42.00 and set an "underperform" rating for the company in a report on Monday, April 20th. Loop Capital raised shares of Trex from a "hold" rating to a "buy" rating and increased their target price for the company from $45.00 to $53.00 in a report on Wednesday, February 25th. Finally, Stifel Nicolaus set a $40.00 target price on shares of Trex and gave the company a "hold" rating in a report on Tuesday. Ten investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, Trex currently has an average rating of "Hold" and a consensus price target of $48.05.

More Trex News

Here are the key news stories impacting Trex this week:

• Positive Sentiment: Trex beat first-quarter estimates, reporting EPS of $0.59 versus the $0.51 consensus and revenue of $343.4 million versus expectations of $340.0 million, which reinforced investor confidence in the business. Trex Company Reports Solid First Quarter 2026 Results
• Positive Sentiment: The company’s updated guidance also looked constructive, with Q2 revenue guidance of $388 million-$403 million and full-year 2026 revenue guidance around $1.2 billion, both roughly in line to slightly above Wall Street expectations, while signaling continued growth momentum. Trex beats estimates in Q1, signals growth push as shares edge higher
• Positive Sentiment: Management said it expects to complete a $150 million share buyback in Q2 and outlined a 2027 regional launch, both of which suggest capital returns and longer-term growth initiatives are still priorities. Trex expects $1.185B-$1.23B in 2026 sales while outlining a 2027 regional launch and $150M buyback completion in Q2
• Neutral Sentiment: The earnings call and presentation added more detail on Trex’s operating trends and strategic priorities, but the main stock-moving catalyst remains the better-than-expected quarterly results and forward guidance. Trex Company, Inc. (TREX) Q1 2026 Earnings Call Transcript

Trex Stock Performance

TREX stock opened at $40.20 on Friday. Trex Company, Inc. has a 52 week low of $29.77 and a 52 week high of $68.78. The firm's fifty day moving average is $38.87 and its 200 day moving average is $39.08. The firm has a market cap of $4.18 billion, a P/E ratio of 22.46, a P/E/G ratio of 9.11 and a beta of 1.51.

Trex (NYSE:TREX - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The construction company reported $0.59 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.51 by $0.08. The business had revenue of $343.40 million for the quarter, compared to analyst estimates of $339.99 million. Trex had a net margin of 16.25% and a return on equity of 19.66%. The company's revenue was up 1.0% on a year-over-year basis. During the same quarter last year, the firm earned $0.60 EPS. As a group, analysts forecast that Trex Company, Inc. will post 1.65 EPS for the current year.

About Trex

Trex Company, Inc is a leading manufacturer of wood-alternative decking and railing systems designed for residential and commercial outdoor living environments. The company's core offerings feature composite decking products made from a proprietary blend of recycled wood fibers and plastic film, which deliver enhanced durability, resistance to rot and insect damage, and low maintenance compared to traditional wood. Trex also provides matching railing, lighting, fencing and cladding solutions that allow customers to create cohesive, high-performance outdoor spaces.

Trex's product portfolio is organized into multiple performance tiers, including premium, mid-range and value-oriented lines.

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